30 Pages Posted: 10 Feb 2003
Date Written: 27 2001 3,
In this paper an inventory model for a single reusable product is investigated,in which the random returns depend explicitly on the demand stream. Further,the model distinguishes itself from most other research in this field by consideringleadtimes and a finite planning horizon. We show that neglecting the dependencybetween demands and returns of products may lead to bad performance with respectto total average relevant costs. Additionally, our results enable us to determine theminimal recovery probability or the minimal length of the planning horizon forwhich reuse is profitable.
Keywords: reusable products, remanufacturing, order-up-to policy, Markov Chain
JEL Classification: M, M11, R4
Suggested Citation: Suggested Citation
Kiesmüller, Gudrun and van der Laan, E., An Inventory Model with Dependent Product Demands and Returns (27 2001 3,). ERIM Report Series Reference No. ERS-2001-16-LIS. Available at SSRN: https://ssrn.com/abstract=370876